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It may not be an issue of inferior v. superior goods, but rather whether people have the capacity to spend on anything discretionary.

Consumers in US and Canada are expecting inflation to persist. The latter are expecting inflation at 6% into 2023, and their central bank is expected to accelerate their rate hiking schedule with the next jump at 75bps.

Having said that, oil remains volatile and seems to be crashing. I haven't heard any news about new OPEC output and the war in Ukraine is continuing with no peace in sight.

IMO, this indicates that the market is now expecting an pricing in a recession. Commodities had already started to fall earlier this year, now oil is catching up. Meanwhile, central bankers have agreed in unison that they will control inflation by any means necessary I.e. Recession or no recession. And you can understand why when politicians just have to look at Sri Lanka to know what citizens will do when inflation is uncontrolled.

Having said that, I'm not sure if equities have priced in a recession, so am expecting further falls...

<blockquote data-quote="waterbottle" data-source="post: 1184489" data-attributes="member: 56541">It may not be an issue of inferior v. superior goods, but rather whether people have the capacity to spend on anything discretionary. Consumers in US and Canada are expecting inflation to persist. The latter are expecting inflation at 6% into 2023, and their central bank is expected to accelerate their rate hiking schedule with the next jump at 75bps.Having said that, oil remains volatile and seems to be crashing. I haven&#039;t heard any news about new OPEC output and the war in Ukraine is continuing with no peace in sight. IMO, this indicates that the market is now expecting an pricing in a recession. Commodities had already started to fall earlier this year, now oil is catching up. Meanwhile, central bankers have agreed in unison that they will control inflation by any means necessary I.e. Recession or no recession. And you can understand why when politicians just have to look at Sri Lanka to know what citizens will do when inflation is uncontrolled. Having said that, I&#039;m not sure if equities have priced in a recession, so am expecting further falls...</blockquote>

[QUOTE="waterbottle, post: 1184489, member: 56541"] It may not be an issue of inferior v. superior goods, but rather whether people have the capacity to spend on anything discretionary. Consumers in US and Canada are expecting inflation to persist. The latter are expecting inflation at 6% into 2023, and their central bank is expected to accelerate their rate hiking schedule with the next jump at 75bps. Having said that, oil remains volatile and seems to be crashing. I haven't heard any news about new OPEC output and the war in Ukraine is continuing with no peace in sight. IMO, this indicates that the market is now expecting an pricing in a recession. Commodities had already started to fall earlier this year, now oil is catching up. Meanwhile, central bankers have agreed in unison that they will control inflation by any means necessary I.e. Recession or no recession. And you can understand why when politicians just have to look at Sri Lanka to know what citizens will do when inflation is uncontrolled. Having said that, I'm not sure if equities have priced in a recession, so am expecting further falls... [/QUOTE]

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